Polymarket’s Legal Challenges Resolved As DOJ Closes Investigation

The US Department of Justice and the Commodity Futures Trading Commission have dropped their investigations into Polymarket, a crypto-betting platform. The decision aligns with the TRUMP administration's push to foster support for the digital asset industry, signaling a shift from the regulatory stance under President Biden.

Polymarket received formal notice this month that the probes, which intensified during Biden's final days in office, were terminated. The investigations focused on whether the platform violated a prior settlement by allowing US users to place bets. The platform saw heavy use during the 2022 midterm elections, with users wagering on political outcomes.

The case took a dramatic turn when FBI agents raided the Soho penthouse of Polymarket CEO Shayne Coplan. Coplan characterized the raid as a politically motivated move against firms linked to Biden's opponents. The crypto community widely views Trump as a more favorable figure for digital assets, anticipating lighter regulatory scrutiny under his administration.